The London-based mobile gaming supplier Nektan Plc has announced that it has decided to carry out an asset sale in addition to a licensing deal with Buckingham HMB Ltd. A total of three gaming brands that are wholly-owned by the company are subjected to the sale.
The Chief Executive Officer of Nektan Leigh Nissim commented on the deal, saying that Nektan had started to “refine” its structure in order to become more focused on its businesses on the territory of Europe and the US. According to Mr. Nissim, the company was also willing to optimise these assets, so as part of the process, the divisions transfer coincided with the white label licensing deal in the long term.
In addition, he also shared that both the asset transfer deal and the licensing agreement would be beneficial for the company as it would provide it with the chance to make progress in the business by providing additional working capital and at the same time continue to draw benefit from the current revenues of the brands in question.
Under the terms of the agreement, Nektan will receive a sum amounting to £1.75 million. A further portion of £200,000 is expected to be paid by Buckingham in a short period of time in return to the assets that are being transferred. The divisions in question mainly involve the web domains, brands and customer databases associated to Sapphire Rooms, Spin Princess and Chomp Casino. All three of them are domestically developed.
In addition, the two parties agreed over a licensing deal for five years when it comes to the continuing operation of the brands that are still to be kept under the white label Evolve platform of Nektan.
When it comes to the assets that are being sold, they generated a total Net Gaming Revenue amounting to about £2 million in the year ended on June 30th, 2016. In the future, Nektan is still expected to report the Net Gaming Revenue related to the above-mentioned brands within its own NGR in line with the company’s other white label partners.
The London-based mobile gaming provider also announced that the profit of the asset sale is planned to be invested in the “working capital requirements” in order for the company to continue its further development on the territory of Europe as well as its joint venture in the US – Respin Inc.
- Author
Olivia Cole
